Shares of Tata Power jumped 8.3 per cent on Monday. The stock has extended its one-month run to over 46 per cent. The latest surge comes on the back of Reliance Industries’ (RIL) acquisition of Sterling & Wilson, which operates in the solar energy space.
“In yet another positive development, RIL’s acquisition of 40 per cent stake in Sterling & Wilson at 20-25 times FY23e P/E underpins our thesis on Tata Power Solar’s (TPSL) much superior business prospects and leaves room for valuation upside of about 50 per cent (Rs 10/share),” said Edelweiss in a note.
Market observers say the stock has also been moving up on the back of a technical factor—potential inclusion in the MSCI.
